Palm climbs over 1pct on stronger rival oils; set to snap two-week decline
KUALA LUMPUR: Malaysian palm oil futures rose more than one per cent on Friday and were poised for their first weekly gain in three weeks, as strength in rival edible oils outweighed pressure from weaker crude oil.
KUALA LUMPUR — Malaysian palm oil futures surged over 1 percent on Friday, on track to record their first weekly gain in three weeks, as stronger rival oils counteracted the impact of softer crude oil prices. The October October palm oil contract on Bursa Malaysia Derivatives Exchange surged RM57, or 1.22 percent, to RM4,718 per metric ton in early trading.
The contract has risen 3.55 percent this week. Dalian's top-soyoil contract climbed 1.22 percent, while its palm oil contract jumped 1.56 percent. Soyoil prices on the Chicago Board of Trade climbed 0.53 percent. Palm oil mirrors changes in rival edible oil prices as it battles for market share. Oil prices retreated as Middle East supply worries eased slightly following US President Donald Trump's announcement that the U.S. will not strike Iran before the upcoming election, following constructive discussions to end the war that has rattled markets.
Weaker crude oil futures make palm a less appealing choice for biodiesel feedstock. The Malaysian ringgit, palm's trading currency, strengthened 0.05 percent against the U.S. dollar, making the commodity marginally pricier for buyers using foreign currencies. Asian stocks tumbled on Friday and looked set for a second consecutive weekly decline as investors worried about high energy costs, bond market turbulence, and the substantial funds required for artificial intelligence investments.
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